_.gif)
_.gif)
The Effect of Entrepreneurship Orientation and Social Capital on Entrepreneur Success in Food MSMEs in West Sumatera, Indonesia
Abstract
Research on entrepreneurial orientation towards business performance has become a broad finding in various business fields. This study shows the effect of entrepreneurial orientation and social capital on entrepreneurial success. The research was conducted on MSMEs with the object of research being MSME owners with a sample of 600 food MSME owners in West Sumatra. The research was conducted using a quantitative method using Structural Equation Modeling (SEM) with the Partial Least Square (PLS) application. The research location is West Sumatra, Indonesia. The results of the study reveal that entrepreneurial orientation directly and positively related to entrepreneurial success, entrepreneurial orientation also positively and significantly related to social capital, and social capital has a positive and significant effect on entrepreneurial success. Social capital as a mediating variable has a partial role in the relationship between entrepreneurial orientation and entrepreneurial success. Social capital as a mediating variable strengthens the relationship between entrepreneurial orientation and entrepreneurial success. These results indicate that entrepreneurial orientation does not only look at business performance that has been seen so far in large and medium-sized companies and in this study looks at MSMEs, which have many limitations in measuring their dimensions because of the difficulty of getting reports on MSMEs. The limitations of research in measuring social capital need to be done qualitatively by involving other dimensions and it is necessary to measure the entrepreneurial orientation of SMEs whether it is appropriate to use 5 dimensions.
Keywords
Full Text:
PDFReferences
Armington, C., and ZJ Acs. 2002. “The Determinants of Regional Variation in New Firm Formation.” Regional Studies 36(1):33–45. Doi: 10.1080/00343400120099843.
Alstete J (2008) “Aspects of Entrepreneurial Success”, Journal of Small Business and Enterprise Development, Vol.15, No. 3, pp. 584-594.
Ayala Calvo JC & Manzano Garcia G (2010) “Established Business Owners' Success: Influencing Factors”, Journal of Developmental Entrepreneurship, Vol. 15, No. 3, pp. 263-286.
Ayala JC & Manzano G (2014) “The resilience of the entrepreneur. Influence on the success of the business. Alongitudinal analysis”, Journal of Economic Psychology, Vol. 42, pp. 126-135
Assor, A., Kaplan, H. and Roth, G. (2002) 'Choice is good, but relevance is excellent: autonomy enhancing and suppressing teacher behavior predicting students' engagement in schoolwork', British Journal of Educational Psychology, Vol. 72, No. 2, pp.261–278.
Boso, N., Story, VM, & Cadogan, JW (2013). Entrepreneurial orientation, market orientation, network ties, and performance: Study of entrepreneurial firms in a developing economy. Journal of Business Venturing, 28(6), 708–727.
Beynon, M., Jones, P., Pickernell, D. and Packham, G. (2016), “A NCaRBS analysis of SME intended innovation: learning about the don't know”, Omega – International Journal of Management Science, Vol. 59, Part A, pp. 97-112.
Bosma, N., and R. Sternberg. 2014. “Entrepreneurship as an Urban Event? Empirical Evidence from European Cities.”Regional Studies 48(6):1016–1033. Doi: 10.1080/00343404.2014.904041.
Coulibaly, S. K., Erbao, C., & Mekongcho, TM (2018). Economic globalization, entrepreneurship, and development. Technological Forecasting and Social Change, 127, 271–280. https://doi.org/10.1016/j.techfore.2017.09.028
Cortinovis, N., J. Xiao, R. Boschma, and FG van Oort. 2017. “Quality of Government and Social Capital as Drivers of Regional Diversification in Europe.” Journal of Economic Geography 17 (6): 1179–1208. Doi: 10.1093/jeg/lbx001.
Chia, C.-C. , & Liang, C. (2016). Influence of creativity and social capital on the entrepreneurial intention of tourism students. Journal of Entrepreneurship. Management and Innovation, 12(2), 151–168. https://doi.org/10.7341/20161227
Covin, JG and Lumpkin, GT (2011), “Entrepreneurial orientation theory and research: reflections on a needed construct”, Entrepreneurship Theory and Practice, Vol. 35 No. 5, pp. 855-872.
Covin, JG and Miles, MP (1999) 'Corporate entrepreneurship and the pursuit of competitive advantage', Entrepreneurship Theory and Practice, Vol. 23, No. 3, pp.47–63.
Covin, JG and Slevin, DP (1989) 'Strategic management of small firms in hostile and benign environments', Strategic Management Journal, Vol. 10, No. 1, pp.75–87.
Covin, JG, Green, KM and Slevin, DP (2006) 'Strategic process effects on the entrepreneurial orientation-sales growth rate relationships', Entrepreneurship Theory and Practice, Vol. 30, No. 1, pp. 57–81.
Dana, LP, Etemad, H. and Wright, RW (2008) 'Toward a paradigm of symbiotic entrepreneurship', International Journal of Entrepreneurship and Small Business, Vol. 5, No. 2, pp.109–126.
De Jong, JPJ, Parker, SK, Wennkers, S. and Wu, C. (2011) Corporate Entrepreneurship at the Individual Level: Measurement and Determinants, Vol. 201108, EIM Research Report.
Goyal, A., & Akhilesh, KB (2007). Interplay among innovativeness, cognitive intelligence, emotional intelligence and social capital of work teams. Team performance management, 13 (7/8), 206-226.
Ghani, E., Kerr, WR and O'Connell, S. (2014), “Spatial determinants of entrepreneurship in India”, Regional Studies, Vol. 48 No. 6, pp. 1071-1089.
Fisher R, Maritz A & Lobo A (2014 ) “ Evaluating Entrepreneurs' Perception of Success: Development of a measurement scale”, International Journal of Entrepreneurial Behavior & Research, Vol. 20,No. 3, pp. 478-492.
Fritsch, M., and M. Wyrwich. 2014. “The Long Persistence of Regional Levels of Entrepreneurship: Germany, 1925–2005.” Regional Studies 48(6):955–973. Doi: 10.1080/00343404.2013.816414.
Florida, R., P. Adler, and C. Mellander. 2017. “The City as Innovation Machine.” Regional Studies 51 (1): 86–96. Doi: 10.1080/00343404.2016.1255324.
Hasan, I., Hoi, C. K., Wu, Q., & Zhang, H. (2016). Does social capital matter in corporate decisions? Evidence from corporate tax avoidance. Journal of Accounting Research, 55(3), 629–668. https://doi.org/10.1111/1475-679X.12159
Hiemstra AMF, Van Der Kooy KG & Frese M (2006)“Entrepreneurship in the street food sector of Vietnam -Assessment of psychological success and failure factor ”, Journal of Small Business Management, Vol. 44 , No. 3, pp. 474-481
Jiménez-Jiménez, D., Sanz-Valle, R. and Perez-Caballero, JA (2020) 'Entrepreneurial orientation and innovation success in family firms', Int. J. Entrepreneurship and Small Business , Vol. 40, No. 1, pp.114–127.
Krauss, RM and Fussell, SR (1996) Social Psychological Models of Interpersonal Communication. In: Higgins, ET and Kruglanski, A., Eds., Social Psychology: A Handbook of Basic Principles, Guilford, New York, 655-701
Lange, T. (2012) 'Job satisfaction and self-employment: autonomy or personality? ', Small Business Economics, Vol. 38, No. 2, pp.165–177.
Laurent & Sorato., (2014). Assessment of entrepreneurial Success perceptions of Umea University. Umea School of Business and Economics
Ling, YAN, Simsek, Z., Lubatkin, MH and Veiga, JF (2008) 'Transformational leadership's role in promoting corporate entrepreneurship: examining the CEO-TMT interface', Academy of Management Journal, Vol. 51, No. 3, pp.557–576.
Le Van, C., Nguyen, AN, Nguyen, NM, Simioni, and M. (2018), Growth strategy with social capital, human capital and physical capital theory and evidence: The case of Vietnam. Journal of Public Economic Theory, 20(5), 768-787
Lumpkin, GT and Dess, G. (1996), “Clarifying the entrepreneurial orientation construct and linking it to performance”, Academy of Management Review, Vol. 21 No. 1, pp. 135-172.
Lumpkin, GT and Dess, G. (2001), “Linking two dimensions of entrepreneurial orientation to firm performance: the moderating role of environment and industry life cycle”, Journal of Business Venturing, Vol. 16 No. 5, pp. 429-451.
Malebana, M. J. (2016). The inuencing role of social capital in the formation of entrepreneurial intention. Southern African Business Review, 20(1), 51–70.
Martin, WL and Lumpkin, GT (2003) ' From entrepreneurial orientation to 'family orientation': generational differences in the management of family businesses', Frontiers of Entrepreneurship Research, pp.309–321, Babson College, Babson Park
Miller, D. (1983) 'The correlates of entrepreneurship in three types of firms', Management Science, Vol. 29, No. 7, pp.770–791.
Mueller, S. (2011) 'Increasing entrepreneurial intention: effective entrepreneurship course characteristics', International Journal of Entrepreneurship and Small Business, Vol. 13, No. 1, pp. 55–74.
Mueller, SL and Thomas, AS (2001) 'Culture and entrepreneurial potential: a nine country study of locus of control and innovativeness', Journal of Business Venturing, Vol. 16, No. 1, pp. 51–75.
Nahapiet, J. and Ghoshal, S. (1998), “Social capital, intellectual capital, and the organizational advantage”, Academy of Management Review, Vol. 23 No. 2, pp. 242-266.
Paiva, PCP , De Paiva, HN , De Oliveira Filho, P. M., Lamounier, JA, Ferreira E , EF, Ferreira, RC, et al. (2014). Development and validation of a social capital questionnaire for adolescent students (SCQ-AS). PLoS One, 9(8), 1–8. https://doi.org/10.1371/journal.pone.0103785
Perreault, C., Brenner, GA, Menzies, T. V, Filion, LJ, & Ramangalahy, C. (2007). Social capital and business performance: Ethnic enterprises in Canada. International Journal of Business and Globalisation, 1(2), 145–160
Putnam, R. D. 2007. “E Pluribus Unum: Diversity and Community in the Twenty -First Century the 2006 Johan Skytte Prize Lecture.” Scandinavian Political Studies 30 (2): 137–174. Doi: 10.1111/scps.2007.30.issue-2.
Parker, SC 2018. The Economics of Entrepreneurship. Cambridge University Press, Cambridge.
Rauch, A., Wiklund, J., Lumpkin, GT and Frese, M. (2009) 'Entrepreneurial orientation and business performance: an assessment of past research and suggestions for the future', Entrepreneurship Theory and Practice, Vol. 33, No. 3, pp.761–787.
Smith, C., Smith, JB, & Shaw, E. (2017). Embracing digital networks: Entrepreneurs' social capital online. Journal of Business Venturing, 32(1), 18–34
Scott, AJ, and M. Stormer. 1995. “The Wealth of Regions: Market Forces and Policy Imperatives in Local and Global Context.” Futures 27 (5): 505–526. Doi: 10.1016/0016-3287(95)00020-W.
Sengupta, A. (2010). Social capital and entrepreneurship: An analysis of methodological issues. Sociological Bulletin, 59(3), 323–344. Retrieved from. http://www.jstor.org/stable/23620887
Syardiansah, et al. (2020). The Effect of Job Satisfaction and Organizational Culture on Employee Performance of the Royal Hotel in East Aceh District. Budapest International Research and Critics Institute-Journal (BIRCI-Journal). P. 849-857.
Tan, J. (2008) 'Breaking the “bamboo curtain” and the “glass ceiling”: the experience of women entrepreneurs in high-tech industries in an emerging market', Journal of Business Ethics, Vol. 80, No. 3, pp.547–564
van Gelderen, M. (2010) 'Autonomy as the guiding aim of entrepreneurship education', Education + Training, Vol. 52, Nos. 8–9, pp.710–721.
van Gelderen, MW and Jansen, PGW (2006) 'Autonomy as a startup motive', Journal of Small Business and Enterprise Development, Vol. 13, No. 1, pp.23–32.
Wahjudewanti, A.S., Tjakraatmaja, J.H., and Anggoro, Y. (2021). Knowledge Management Strategies to Improve Learning and Growth in Creative Industries: A Framework Model. Budapest International Research and Critics Institute-Journal (BIRCI-Journal) Vol 4 (2): 1903-1915.
Wennkers, S., Thurik, R., van Stel, A. and Noorderhaven, N. (2010) Uncertainty Avoidance and the Rate of Business Ownership across 21 OECD Countries, 1976–2004, pp. 271–299, Springer, Berlin Heidelberg.
Westlund, H., JP Larsson, and AR Olsson. 2014. “Start- Ups and Local Entrepreneurial Social Capital in the Municipalities of Sweden.” Regional Studies 48(6):974–994. Doi: 10.1080/00343404.2013.865836.
Wiklund, J., & Shepherd, DA (2011). Where to from here? EO-as-experimentation, failure, and distribution of outcomes. Entrepreneurship Theory and Practice, 35(5), 925–946.
Williams, N., Huggins, R., & Thompson, P. (2017). Social capital and entrepreneurship: Does the relationship hold in deprived urban neighborhoods?. Growth and Change, 48(4), 719–743.
Zaremohzzabieh, Z., Ahrari, S., Krauss, SE, Samah, ABA, Meng, LK, & Ariffin, Z. (2019). Predicting social entrepreneurial intention: A meta-analytic path analysis based on the theory of planned behavior. Journal of Business Research, 96, 264–276. https://doi.org/10.1016/j.jbusres.2018.11.030
DOI: https://doi.org/10.33258/birci.v5i1.4051
Article Metrics
Abstract view : 201 timesPDF - 76 times
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.